Managed Application Services Market Overview
As per MRFR analysis, the Managed Application Services Market Size was estimated at 125.17 (USD Billion) in 2022.The Managed Application Services Market Industry is expected to grow from 141.1(USD Billion) in 2023 to 414.3 (USD Billion) by 2032. The Managed Application Services Market CAGR (growth rate) is expected to be around 12.72% during the forecast period (2024 - 2032).
Key Managed Application Services Market Trends Highlighted
The Managed Application Services market is expected to grow as a result of several key market drivers, such as increased use of cloud computing, focusing on main competencies by firms and growing complexity in application management. Managed application services have prospects for growth, which include AI and ML adoption, increased demand for managed services in emerging regions, and the need for security and compliance. The adoption of agile-DevOps methodologies, containerization, and the popularity of microservices are the most recent trends in the Managed Application Services market. These drivers have led to an increasing need for managed application services capable of offering modern applications with flexibility, scalability, and security.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Managed Application Services Market Drivers
Increased Cloud Adoption
The Managed Application Services Market Industry is one of the most significant drivers, and it is mainly due to the increasing usage of cloud computing. Most firms are taking advantage of cloud scalability, adaptability, and economy by moving their applications and data there. This, in turn, increases demand for managed application services because companies need aid in managing and optimizing their cloud-based applications. As a result, the managed application service market will grow at an impressive rate over the next few years.
Need for Enhanced Security
The increasing need for enhanced security is another major driver of the Managed Application Services Market Industry. Businesses are facing increasingly sophisticated cyber threats, and they need help protecting their applications and data. Managed application services can provide businesses with the security expertise and resources they need to protect their applications from cyberattacks. The managed application services market is expected to grow significantly over the next few years as more and more businesses recognize the importance of cybersecurity.
Growing Importance of Application Performance
Another prominent driver of the Managed Application Services Market Industry is the continuously growing application performance. Nowadays, countless businesses depend on applications for their operations, and they have to ensure that these applications are functioning. Manages application services and allows businesses to optimize applications and ensure they run properly. The demand for managed applications is increasing, and thus, the market is predicted to expand notably in the following years.
Managed Application Services Market Segment Insights
Managed Application Services Market Application Type Insight
The Managed Application Services Market is segmented into the following categories of Application Type, namely, Enterprise Resource Planning, Customer Relationship Management, Supply Chain Management, Business Intelligence, and Others. ERP had the largest market share among all categories into which the market was segmented. For this reason, it is expected that the ERP segment will hold onto its position throughout the forecast period. According to research findings, this trend can be attributed to the increased acceptance of cloud-based ERP solutions that have a number of advantages, such as enhanced flexibility, scalability, and economic cost, which enable businesses to support this technology.
Also, there will be an expected high growth rate for the CRM market segment. This is due to rising demand for customer-centric solutions and increased adoption of CRM solutions, especially those targeted at SMEs. The SCM market is also anticipated to grow steadily. This increase is triggered by the growing levels of complexity in supply chains, thus calling for improved visibility and control over transactions happening within them. Moreover, the BI market is projected to grow at a slightly slower pace during the forecast period.
This expansion emanates from an increased need for data-driven decision-making and a rise in the usage of BI solutions by companies ranging from small-sized firms to large corporations, just like any other industry where businesses need customers. Furthermore, the other market is expected to scale up at a constant pace owing to the greater necessity for other applications like HCMs, financial management or project management systems. Therefore, the managed application services market as a whole is estimated to expand considerably over the forecast period with factors such as increasing adoption of cloud-based managed application services, growing needs for better efficiencies and reduced costs related to operations, and escalating complexities in business applications contributing towards this growth direction.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Managed Application Services Market Deployment Model Insights
The Managed Application Services Market segmentation by deployment model comprises on-premise, cloud-based, and hybrid. The largest market share in 2023 was occupied by the cloud-based segment and is expected to dictate terms for the entire projected period. The rise of the cloud-based segment is due to its use by many businesses when it comes to providing cloud computing services. Scalability, flexibility, and price are among the numerous advantages that companies can avail themselves of through cloud-based managed application services. The forecast period will experience a regular pace of growth in the on-premise segment.
On-premise managed application services provide better control and security over applications for enterprises. A combination of on-premise and cloud-based deployment models gives hybrid segments. During the forecast period, this section is expected to grow at an accelerated rate due to its offering both on-premise and cloud-based deployment models’ merits.
Managed Application Services Market Organization Size Insights
The Managed Application Services Market is segmented by organization size into Small and Medium-Sized Enterprises (SMEs) and Large Enterprises. In 2023, the Large Enterprises category dominated the market and is estimated to maintain its position till the end of the forecast period. Factors contributing to this trend include an increasing use of cloud-based applications and a growing need for expert handling of complex IT infrastructure. Conversely, SMEs are anticipated to have higher growth rates in the projected timeframe as they become more aware of the benefits of managed application services and focus on optimizing IT operations. By 2032, revenues from the Managed Application Services Market are expected to hit $85.6 billion for the SME segment, representing a CAGR of 13.2% over a decade.
Managed Application Services Market Vertical Insights
The Managed Application Services Market is segmented into various verticals, including Manufacturing, Financial Services, Retail, Healthcare, and Others. Each vertical has its own market dynamics and possibilities for growth. Manufacturing: Within the manufacturing vertical, the Managed Application Services Market would see a considerable share of its revenue emanating from it due to increased automation and digitalization in manufacturing processes. The use of managed application services by manufacturers seeking to optimize their IT infrastructure and applications with an eye on efficiency and productivity is on the rise.
Financial Services: Financial services are also one of the dominant sectors in this market space. Improved customer experiences, simplified operations and adherence to regulatory requirements continue to be top priorities for financial institutions. They can effectively manage their complex application landscape by employing managed application services that bring flexibility and expertise into play. Retail: A growing trend towards e-commerce and multichannel retailing is driving retail sector demand for managed application services.
As they seek to improve supply chain management, increase user interaction for customer-facing applications, or optimize IT infrastructures, retailers are taking advantage of these services. Healthcare: The healthcare vertical relies on efficient healthcare IT systems. Hospitals and healthcare providers depend heavily on key applications that must run smoothly; as a result, they embrace managed application services and improve patient care quality while meeting regulatory compliance requirements. The other category contains industries like education, government, transportation etc.
These sectors have also witnessed an increasing demand for managed application services in order to support their IT operations and drive innovation within their organizations [10]. This kind of segmentation by verticals offers insight into different industrial needs together with opportunities for growth across various industries within the globally managed application service markets altogether. As such, understanding these dynamics will help players customize strategies so as to take full advantage of a rapidly developing market like this one.
Managed Application Services Market Regional Insights
The regional landscape of the Managed Application Services Market presents a diverse picture, with each region exhibiting unique characteristics and growth dynamics. North America is expected to maintain its dominance in the market, accounting for a significant share of the Managed Application Services Market revenue in 2023. The region's robust IT infrastructure, presence of major technology companies, and high adoption of cloud-based services contribute to its market leadership. Europe is another key market, with a strong presence of managed service providers and a growing demand for application modernization and optimization services.The Asia-Pacific region is anticipated to witness substantial growth in the coming years, driven by factors such as increasing digital transformation initiatives and government support for IT development. South America, the Middle East, and Africa (MEA) regions are also expected to contribute to the overall market growth, albeit at a slower pace.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Managed Application Services Market Key Players And Competitive Insights
The major players in this industry are some of the most popular names in the world. Leading Managed Application Services Market players are constantly focusing on developing and innovating new technologies to gain a competitive edge. The current Managed Application Services Market development is driven by the increasing adoption of cloud-based applications and the need for organizations to enhance application performance and efficiency. The presence of a sizable number of large and small managed application services vendors characterizes the Managed Application Services Market Competitive Landscape. Some of the players in this industry are IBM, Wipro, HCL Technologies, Accenture, and Capgemini. Each of these companies provides a vast line of managed application services, including application development, maintenance and support.
The leader of the Managed Application Services Market is IBM. The company provides a wide line of managed application services capable of helping organizations optimize their application performance and efficiency. IBM’s line of application management services relies on a proven methodology, ensuring exceptional levels of quality and reliability. The company has a team of experienced professionals whose only goal is to deliver the best service available to its customers. As a result, for many of the world’s leading organizations, IBM has been a valued partner, capable of providing their services for an extended period.
Wipro is one of IBM’s competitors in the Managed Application Services Market. The company provides a wide line of managed application services. Wipro’s managed application services are very similar to IBM’s and also include application development, maintenance and support. The company’s line of Managed Application Services follows a similar methodology, being capable of helping organizations optimize their application performance and efficiency. Like IBM, Wipro has a team of experienced professionals capable of delivering the best possible outcome to its customers. For many of the world’s leading organizations, Wipro has a long tradition of success in the Managed Application Services Market.
Key Companies in the Managed Application Services Market Include
Managed Application Services Market Industry Developments
The Managed Application Services Market is projected to grow significantly over the next decade, driven by factors such as the increasing adoption of cloud-based applications and the need for businesses to improve their operational efficiency. The market is expected to reach a valuation of USD 414.3 billion by 2032, expanding at a CAGR of 12.72% from 2024 to 2032. Recent developments in the market include the growing adoption of artificial intelligence (AI) and machine learning (ML) technologies to automate and optimize application management processes. Additionally, the rise of edge computing is expected to create new opportunities for managed application service providers as businesses seek to deploy applications closer to the edge of their networks to reduce latency and improve performance.
Managed Application Services Market Segmentation Insights
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Managed Application Services Market Application Type Outlook
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Enterprise Resource Planning (ERP)
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Customer Relationship Management (CRM)
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Supply Chain Management (SCM)
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Business Intelligence (BI)
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Others
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Managed Application Services Market Deployment Model Outlook
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On-Premise
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Cloud-Based
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Hybrid
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Managed Application Services Market Organization Size Outlook
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Managed Application Services Market Vertical Outlook
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Manufacturing
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Financial Services
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Retail
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Healthcare
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Others
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Managed Application Services Market Regional Outlook
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North America
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Europe
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South America
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Asia Pacific
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Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
125.17(USD Billion) |
| Market Size 2023 |
141.1(USD Billion) |
| Market Size 2032 |
414.3 (USD Billion) |
| Compound Annual Growth Rate (CAGR) |
12.72% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
HCL Technologies, Accenture, Wipro, Cognizant, TCS, IBM, Atos, NTT DATA, DXC Technology, Computer Sciences Corporation, Capgemini, HP Enterprises, Microsoft, DXC Technology, Infosys. |
| Segments Covered |
Application Type, Deployment Model, Organization Size, Vertical, Regional. |
| Key Market Opportunities |
Cloud adoptionDigital transformationOutsourcingMobile app managementBig data and analytics |
| Key Market Dynamics |
Cloud AdoptionGrowing ComplexityNeed for Cost OptimizationDigital TransformationCybersecurity Concerns |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Managed Application Services Market was valued at 141.1 billion U.S. dollars in 2023, and it is expected to reach a valuation of 414.3 billion U.S. dollars by 2032, exhibiting a compound annual growth rate (CAGR) of 12.72% during the forecast period. The growth of the market can be attributed to the increasing adoption of cloud computing, the growing need for businesses to focus on their core competencies, the rising demand for managed services to improve IT efficiency and reduce costs, and the increasing adoption of managed application services by small and medium-sized enterprises (SMEs).
The Managed Application Services Market is segmented into four major regions: North America, Europe, Asia-Pacific, and the Rest of the World (RoW). North America is expected to hold the largest market share during the forecast period, owing to the presence of a large number of technology companies and the early adoption of managed application services in the region. Europe is expected to be the second-largest market, followed by Asia-Pacific and RoW.
Managed application services are used across various applications, including infrastructure management, application development and maintenance, cloud migration, and security and compliance. Infrastructure management is the most common application, accounting for a significant share of the market. Managed application services can help businesses improve the performance and availability of their IT infrastructure, reduce costs, and free up internal IT resources to focus on more strategic initiatives.
The Managed Application Services Market is highly competitive, with a number of established players and emerging vendors. Some of the key players in the market include IBM, Accenture, Wipro, Cognizant, DXC Technology, Capgemini, TCS, Infosys, and Atos. These players offer a wide range of managed application services, including infrastructure management, application development and maintenance, cloud migration, and security and compliance.
The Managed Application Services Market is witnessing several key trends, including the increasing adoption of cloud computing, the growing need for businesses to focus on their core competencies, the rising demand for managed services to improve IT efficiency and reduce costs, and the increasing adoption of managed application services by small and medium-sized enterprises (SMEs). In addition, the market is also seeing a growing demand for managed application services that are tailored to specific industry verticals.
The Managed Application Services Market is facing a number of challenges, including the lack of standardization, the need for skilled professionals, and the security concerns associated with managed application services. The lack of standardization can make it difficult for businesses to compare different managed application services offerings and to ensure that they are getting the best possible value for their money. The need for skilled professionals can also be a challenge, as managed application services require a high level of expertise. Finally, the security concerns associated with managed application services can be a deterrent for businesses that are concerned about the security of their data.
The Managed Application Services Market offers a number of key opportunities for businesses. These opportunities include the ability to improve IT efficiency and reduce costs, the ability to focus on core competencies, and the ability to access the latest technologies and expertise. Managed application services can help businesses improve their IT efficiency and reduce costs by providing them with a cost-effective way to manage their IT infrastructure and applications. Managed application services can also help businesses focus on their core competencies by freeing up internal IT resources to focus on more strategic initiatives. Finally, managed application services can help businesses access the latest technologies and expertise, which can give them a competitive advantage.
The Managed Application Services Market is being driven by a number of key factors, including the increasing adoption of cloud computing, the growing need for businesses to focus on their core competencies, the rising demand for managed services to improve IT efficiency and reduce costs, and the increasing adoption of managed application services by small and medium-sized enterprises (SMEs). The increasing adoption of cloud computing is a major driver of the market, as businesses are increasingly looking to managed application service providers to help them manage their cloud infrastructure and applications. The growing need for businesses to focus on their core competencies is also driving the market, as businesses are increasingly looking to managed application services providers to help them manage their IT infrastructure and applications so that they can focus on their core business activities.
The Managed Application Services Market is being restrained by a number of key factors, including the lack of standardization, the need for skilled professionals, and the security concerns associated with managed application services. The lack of standardization can make it difficult for businesses to compare different managed application services offerings and to ensure that they are getting the best possible value for their money. The need for skilled professionals can also be a challenge, as managed application services require a high level of expertise. Finally, the security concerns associated with managed application services can be a deterrent for businesses that are concerned about the security of their data.
The Managed Application Services Market is expected to grow from a valuation of 141.1 billion U.S. dollars in 2023 to a valuation of 414.3 billion U.S. dollars by 2032, exhibiting a compound annual growth rate (CAGR) of 12.72% during the forecast period. The growth of the market can be attributed to the increasing adoption of cloud computing, the growing need for businesses to focus on their core competencies, the rising demand for managed services to improve IT efficiency and reduce costs, and the increasing adoption of managed application services by small and medium-sized enterprises (SMEs).
